Oil & Energy
Cooking Gas Price Rises Again After Decline
Prices of liquefied Petroleum Gas, LPG, also known as cooking gas, are again on the rise after declining at the beginning of the year.
The NUPENG branch of Liquefied Petroleum Gas Retailers Association has decried the increase of cooking gas prices across the country.
Current market prices revealed an increment of up to N1,000 for 12.5kg, and N80 for 1kg within the last two weeks.
Within Lagos and neighbouring states, 12.5kg is now being sold for N8,500 from N7,500, while in Northern, Southeast, and South-South, the price has increased to N9,000/N9,500 from N8,000/N8,500.
Depots prices also increased significantly as 20 metric tons of cooking gas is now being sold for N11 million as against N10 million.
Chairman of the Association, Chika Michael Umude, described the situation as worrisome, noting that the increase of the product is now on a daily basis in both depots and retail outlets.
In a statement obtained by SweetCrude, Umudu said “the union, therefore expects the government to come up with clear policy direction for the development of LPG in the country to forestall the ugly situation.
“LPG as a clean energy has steadily been embraced by low income earning Nigerians in the last seven years against previous years when it was seen as the preserve of the rich.
“The branch union considers as an irony that such price rises are happening at the time when government is, through policy statements, assuring Nigerians of adequate supply of the product at affordable prices”, he said.
Recall that between December 2020 and early months of 2021, the government through its various programmes launched gas expansion programme often tagged “Gas Decade” aimed at not only making LPG available to all Nigerian homes irrespective of income level but also to expand the use of gas for other purposes such as automobile and public/private electric generation.
He explained that enabling infrastructure would have been in place before the launch of ‘Gas Decade’ initiatives in 2020.
“This is not equally good at this time when efforts should be at the top gear to expand the use of LPG in the country as a means of reducing environmental pollution, deforestation and desertification.
“The union, therefore, charges the government to revisit its gas expansion programme and to involve all stakeholders in the process. The branch union also decries the situation where gas produced in Nigeria is priced in dollars.
“Similarly, the branch union believes that more local production should be encouraged to minimize if not to eliminate importation,” he said.
Umudu also noted that the branch union considers as unfortunate a situation where major marketers, including the IOCs, are prioritizing retailing and related activities against their expected major role which is production.
“This is in essence killing mass employment and local participation in the sector. No economy grows where small local enterprises are not encouraged.
“It is, therefore, expected that major marketers in the sector should concentrate in high capital/technology investments such as LPG production and establishment of tank farms which would boost the country’s economy and create employment.
“This is against the trend in the last 15 years when retailing and other ‘briefcase’ business activities have been prioritized by the major companies to the detriment of small businesses and supply stability. This is because it has been proven beyond every reasonable doubt that absence of adequate product is the bane of the LPG development in the country,” he said.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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